Do not be surprised if MNI pulls a rabbit out of the hat and has a "decent" Q2 report compared to the past 12 months. Job cuts this company has undertaken will start to show up on the income statement. The firming of real estate values in some markets is starting to show up in slightly increased ad spend from realtors and builders, except in Florida. The auto business is starting to firm up as inventories are down to manageable levels and signs are looking much better than they have in a long time.
Despite my personal dislike for Pruitt, I believe this company has dodged the short term bankruptcy threat based on recent activity in the market. I think buying this stock at 50 cents per share offers a compelling chance to get a double or triple in the next 12 months. The long-term BK threat still exists, but a surprising 2Q report may do wonders for this stock in the short term.
What do you think -- is this happy talk, or a real possibility?
McClatchy's second quarter conference call is at the end of this month.